Posted by James Hunter on July 15, 2004 at 10:00:26:
I have a property in brooklyn albeit its a pretty crappy neighborhood, still a property. It’s a store in brownsville. The store needs a total rehab but it gets 20,000 in advertising income from billboards. The owner and the realtor were asking 265,000 they reduced their offer to 235,000 and then reduce the offer again to 220,000 cool. Okay fix up the realtor says the property is worth 395,000. I admit I should get a second opinion but I haven’t. Also I should bring a contractor in there to see what the estimates are for real. However when I bring my investors through they want to nothing to do with the property unless its 180,000 or less because they estimate that it takes 70,000 to 100,000 get it back up to par and then another sixth months to sell it. Mean while everything in brooklyn is overprice anyway. My partner says he wa talking to some developers are they were saying that they wanted eith a building that it priced 5 times past its cashflow fifty feet tall or in a good location. Any combination of the two. Is that realistic for buyers expected that you bring them those kinds of deals. If I were I would keep them for my self. WHo can’t get a hard money loan with those variables. Wouldn’t it make sense to buy low in a neighborhood that doesn’t have that much exposure. I don’t know new to new york real estate in D.C. I could have made this work and then some. Any advice is appreciated.